Question #$1$

Gorski Co$.$ reported on its general ledger an inventory balance of $$375,000.$ After doing a physical count, Will found only $$340,000$ in physical inventory. Gorski Co$.$ had $$15,000$ worth of inventory held by third$-$parties on consignment and purchased $$5,000$ more inventory, FOB destination. At the time that the general ledger amount was reported, $$10,000$ in sales were in transit to customers, FOB destination. What should Gorski Co$.$ report as shrinkage?

A$.$ $$0$

B$.$ $$5,000$

C$.$ $$10,000$

D$.$ $$15,000$

E$.$ $$20,000$